Court approves creation of new Chrysler Group
The U.S. Bankruptcy Court, Southern District of New York, has approved Chrysler LLC's request to sell all of its operations to Chrysler Group LLC, a new company formed in alliance with Fiat SpA.
The new company "will soon begin operations with significant strategic advantages, such as a wage and benefit structure for active and retired employees that is competitive with those of transplant manufacturers; a reduction of debt and interest expense; the disposition of idle assets; a rationalized and more efficient dealer network; and sound agreements with our suppliers," says Chrysler Chairman and CEO Bob Nardelli.
Chrysler officials report that work with Fiat to develop "the next generation of environmentally friendly, fuel-efficient, high-quality vehicles" is underway.
Chrysler's Mexican, Canadian and other international operations also will be acquired by the new Chrysler Group.